If you have read even just a few financial articles on the internet, you will notice a common trend in the authors’ assumptions or beliefs. Financial authors are writing with the conviction that anyone can improve their financial situation if they try hard enough. The idiom, which communicates this ideology, “Pull yourself Up By Your Bootstraps,” is prevalent in the blogosphere. There are many success stories that support this idea, but I can’t help but wonder if it is a load of crap (to put it nicely).

Similar to when Sam asked if we can change our spending habits, I can’t help but wonder if we are truly in control of everything. Do we have the power to change our life around when the worst happens? I know what I have been taught to believe and what I would like to believe, but is that really the case?

We Like to Have Control

For those unaware of the phrase, “pull yourself up by your bootstraps”, it refers to improving your situation by hard work and determination. It implies a certain degree of agency or influence to make your own situation better. In many ways, it aligns with much of American ideology like that of ‘Manifest Destiny’, which implies themes like conquering, destroying, or controlling. We like to be in control, don’t we?

Many of us are unwilling to give up private transportation (even though cars are destroying our society in more than one way) because we like the control that it offers us. Who likes to wait for public transportation or ride a bike to work? Not only does it generally take more time to use public transportation, but you never know when the weather will change. A long walk or ride in the rain or snow is hardly enjoyable (maybe because it disrupts the “order” in our lives). While I enjoy riding my bike in the summer (when it’s not raining), I will be the first to admit that I also enjoy the luxuries of having my own car and being able to travel wherever and whenever I choose.

My wife and I spent 6 weeks in Central America after we got married, teaching English at a university. It was on the Caribbean coast and very remote. While we lived not too far from a small airport, there were several towns that were only accessible by boat. This sounds manageable, except when it is raining and the waves are too choppy to make the trip. It rained when my wife was visiting one of these towns and it delayed her return trip by two days. A two-day delay just because of some rain! I often complain about a flight being delayed a couple hours, so you can imagine our feelings when the rain changed our plans for half of the week.

Why We Like to Think We Are In Control of Our Finances

While I think that our cultural beliefs and ideologies influence how we see personal finance, there seem to be other factors at play for the popularity of this ideology within personal finance. I think there is something unique about the field of personal finance that requires this belief that we have the power to change our situation. In the world of personal finance, it’s not just an issue of whether the leopard can change her spots, it’s that a leopard must be able to change her spots.

Without some degree of influence, our writing is pointless – Many personal finance authors write in order to help others take control of their finances. This is probably because we know that everyone needs help with money, but it also implies that our readers have the ability to change how they manage their finances. If we don’t have at least a small degree of power to change our situation, it seems meaningless to keep writing as a personal finance blogger. If everyone is a product of their environment and/or genes, then there is no point to try and convince them to save more, spend less, or invest properly.

I believe this understanding stems out of the experiences that we have as people. We have been there. We’ve made dumb financial decisions and learned valuable lessons. If we can change our perspective or habits, surely everyone can change, right? If we can learn to manage our finances successfully, why can’t everyone else?

This is where it gets tricky. This necessary belief in a small degree of influence often gets misinterpreted for equal and infinite opportunities. The belief that You Can Be Whoever You Want to Be is misleading. While our capitalist society may not legally prevent someone from becoming the next Mark Zuckerberg, reality tells us that not everyone is given the same opportunity. A 16 year old who is forced to drop out of school to get a job and help his single parent make ends meet is not given the same career opportunities as a Harvard graduate. Social and economic setting may not absolutely determine one’s options (because the 16 year old could come up with a great business idea), but it certainly affects them.

Do you buy into this belief that everyone can change their situation? What has caused you to think this way?

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In a country like the United States, we do exercise a great deal of control over our finances. I acknowledge that some of us were born with more opportunities than others. But if you don’t think you can change your present condition, then you won’t do anything. I doubt there are many people in this country who have ZERO influence over their lives. There are too many people who’ve overcome their circumstances to suggest financial defeat is the only option.

I agree – there is hope, especially after reading success stories, but we would be naive to think that we can do whatever we want. We can all improve our situation, but surely not all of us can be successful business people, etc.

I do believe most of us can control our financial situations but there is NO doubt that everyone does not have the same opportunity to earn $60,000+/year.

With that said, a person making $25 or 30k/year can eventually become wealthy. It requires that they save EARLY and live a few hundred dollars a month below their means. Sure, their life won’t look like that of somebody that makes $60k, but if they can accept that then they’ll be fine.

One of my keys to financial peace is understanding that you MUST live on less than you make, regardless of what that looks like. If you have to live in a trailer so you can only have a rent of $200/month then that’s what you must do.

This is a great post because not everyone can change their situation. If you have a sick kid who constantly needs doctor visits and medications, but you’re on state aide for example, this drain onyour finances is not particularly changeable. Especially if the child is requring a lot of your time so that you cannot get a better paying job. But what I think IS true is that most people can improve their individual circumstances a little (at least). Inmy example, the parent maybe doesn’t need to buy coffee at the hospital all the time, they coudl bring it from home or sometthing. That changes their financial situation a little, even though it doesn’t make a huge change like so many PF blogs say is possible.

Thanks TB – It is a topic that needs to be discussed. I agree with you that small things matter, but they can only help so much. That doesn’t mean it’s pointless, but it’s also not helpful to believe you can do whatever you want when you can’t.

Disabilities aside, anyone can make their situation better. Will we all be millionaires? No. There are many many ways to reduce monthly expenses and they all involve personal choice. For those that struggle to make ends meet, there are many assistance programs available that can help with retraining and placement in higher income fields. Yes I believe most people can change, you just have to want it bad enough.

I think most people can improve their situation by making better choices 99% of the time. But it boils down to education (are they educated enough to know they need to change) and will (are they willing to make those changes even though it might feel uncomfortable in the beginning). Change is difficult for almost everyone – we get comfortable and complacent and just don’t want to change, but it’s not impossible.

P.S. I bike ride to work about 4 out of 5 days- so some of us really do make a change.

Little House, you make a great point. It’s the will to change that will ultimately be the determining factor and that’s something a lot of people don’t have. I feel that unless somebody is disabled (physically or mentally), we’re all afforded the same opportunities.

I do believe people can change their circumstances. If you live in a third world country it may be much harder to change things than if you live in North America. That being said, it often comes down to how bad you want your present situation to change. If you’re willing to do what it takes to make it happen. Anything is possible!

Although this is an interesting topic, I must respectfully disagree 100% with the conclusions. Yes, the example of the poor 16 year old is a very tragic tale. But I would argue that most of the people reading the writings of our PF blogs are probably near to mid-middle class working individuals who just need a little help figuring things out with budgeting or starting a 401k. It is too much of a defeatist attitude to simply throw your hands in the air and say “Oh, well. There’s nothing I can do about it.” I simply can’t accept that. There is nothing special about any of the financial strategies I use. Part of my whole motivation for starting a PF blog was to show people how easy it is to implement these tricks and become better off. Sure there may be challenges, but I would rather be a part of the solution then the problem.

Yes, I didn’t mean to suggest it is hopeless or that we can’t do anything about it. I did want to get to the point that sometimes we tell people that they can become whoever they want to be, when in reality, it’s not the case. Hard work and determination won’t cut it all the time. It will help, but won’t make any possibility a reality.

Like many people have stated, I believe that the mojority of AMERICANS have the power to change their financial situation for the better. Heck, I can definitely change how I spend to improve my financial situation at least a little. The reason I started blogging was that I ran into too many people who make money, but don’t know what to do with it. I can almost guarantee I can take anyone’s budget and make an improvement to it that will have a long-term impact if adhered to. It comes down to education on how to propery handle your money to achieve your goals.

I am very optimistic that EVERYBODY can change their financial situation if they want to. In my mind, everything is rational.

If you want to make more money, you will study harder and come in 2 hours before everybody else and leave after.

If you want to create a good blog, you will work for 30 hours a week on your site for 160 weeks in a row to get there.

America is Easy St. compared to so many other countries out there, and I know, because I’ve lived in 7 other countries. It’s why you hear so many cases of immigrants doing well. If immigrants, where English is a second language can make it, why can’ those who hav English as a first language make it?

Finally, look at Apple. People are spending BOATLOADS on their products. Why? Because people are wealthy. Nobody spends money they don’t have.

Sam, Your viewpoint is right on the money. As an immigrant, I’ve overcome lots of adversities with sheer determination. I believe that to become wealthy you have to have conviction to become wealthy. Same principle applies to anything we do in our lives.

I am a dualist in all this. In other words, I believe that we have agency (control to decide upon, act and control our destiny) but there are also structures. There are people who’s agency is so deminished that they are victims of the structure. Popverty is so exhausting that people have no energy to study harder, or fight…or anything much really.

Apart from that there are cycles of deprivation anywhere – quite a bit in the US, actually. Generations of people who are un-educated, have not had jobs and have no way to know what is an opportunity if it hit them on the head.

The possibility exists for everyone to live free of fear for their finances. Everyone won’t become wealthy. It’s just not the nature of the system. Everyone can live free of fear when it comes to paying bills, feeding their family, and surviving a job loss.

As far as pulling yourself up by the bootstraps, it’s incomplete. People all over the world are busting their butts just to survive another pay period. An unfortunate number of people are busting their butts and not surviving. Hard work and determination may be necessary, but they aren’t sufficient. Without the belief that the possibility exists for THEM, all the hard work and determination in the world doesn’t amount to a hill of beans.

It’s one thing to know on an intellectual level the possibility exists, it’s a whole other thing to know that the possibility exists for you. This is especially true when you grow up in circumstances where the attitude is “That’s the way it is and that’s the way it’s always going to be.” It took me thirty years to shake that idea and start moving forward.

Until someone commits to that possibility, there’s not much you can do for them. Not because they’re lazy or stupid. They’ve just never been exposed to the idea in a meaningful way. It’s why I’ve fallen away from personal finance blogging. Too much emphasis on the bootstraps and not enough on convincing people that it’s not only possible to want something more, but it’s ok to want it.

With sheer determination, hard work, and discipline, ANYBODY and EVERYBODY can change their financial situation. The stories I read on different blogs how they became debt-free inspired me to become debt-free. We were able to do it and I believe others can do it as well. Again, with determination, hard work, and discipline.

I agree that it is totally within our individual control to do something about their finances. I will go further and say that I am always responsible for my actions and lack of action. I will never blame anybody else because there is always something I can do

I don’t think that you can change every situation, but I don’t believe there’s a single situation that can’t be overcome. For example, I lost my father when I was 18, and it had a devastating impact on my life. There’s nothing I can do to change what happened. After that, I may not have had the same opportunities as others, but that’s very different than bootstrapping. Some people fall into a life where I actively carve out mine. I don’t think I’m in control of everything that happens to me or around me, but I control my responses and my approach. I appreciate many pf writers because they give me different perspectives or information that allow me to continue to create opportunities and a life that I’m happy with.

I don’t know that each individual has the ability to overcome their situations, but enough people have that I think it’s an untapped part of humanity. And that makes me hopeful.

I think we all have the power to change who we are and of course it’s harder for some people than others. I don’t think the ability to change is 100% based on financial means either because having money doesn’t mean a person is going to be motivated, or even nice for that matter. Our finances affect our lives in a lot of ways, but our attitudes and emotions are a big part of who we are too.

Yes I truly believe we have the power to change our financial situation as well as other things. But one must ask what is change? What is change to you might not be to someone else. Barring the obvious where someone goes from poor to rich, I think there are levels of achieving change that needs to be applauded. I will give you a more basic example of what I mean. I started the Insanity workout and post a picture of me the day before I started and one after the first workout as a side by side comparison. Was there obvious change? No but the fact that I did something or the fact that I put my toe in the water is change that needs to be supported. When people do that with their financial situations I think we can honestly say that they are changing.

Yes I truly believe we have the power to change our financial situation as well as other things. But one must ask what is change? What is change to you might not be to someone else. Barring the obvious where someone goes from poor to rich, I think there are levels of achieving change that needs to be applauded. I will give you a more basic example of what I mean. I started the Insanity workout and post a picture of me the day before I started and one after the first workout as a side by side comparison. Was there obvious change? No but the fact that I did something or the fact that I put my toe in the water is change that needs to be supported. When people do that with their financial situations I think we can honestly say that they are changing.

I do think that people can change the way they manage their finances. It might come to some work, cultural change, or even change in values but it can happen. My point of view comes from being a finance professor, having my Master’s in Financial Planning, and working with people. I’m a big supporter of looking at economics and even personal finance through a behavioral lens and not so much a mechanical one. We all tend to act and do the things that will provide us the greatest amount of utility (or perceived utility – how we are seen) with as little friction as possible. Sometimes people tie their personhood with their finances so tightly that to make a change, even for the better, means that they are changing at the core – and goodness we can’t have people see you being more frugal because what will they think. Spending has become part of our value systems. Now this is not for everyone and I am by no means making a blanket statement – I’m just addressing those that say they want to change and do better but never manage to do so. Yes it can happen, yes it takes work, and yes it takes having a better understanding of our relationship with money. I love that we all blog about this and comment because it helps set the stage for someone to build their financial literacy chops. I believe that once people take an interest and start to read, passively through raising awareness they are creating a catalyst to do better. Not to sound cliche’ish but you pay for the things you don’t know. :)

Mindset is a lot of it. If you believe you can, you’re that much more likely to do it. There are a ton of programs out there to help that teenager who had to drop out of high school. It’s just whether or not they are made aware that there is help. America is not the top country for upward mobility. I heard on a news report recently that it’s….Finland? And America isn’t as high up on the list as our values lead us to believe. So you’re right. But at the same time I think it IS possible…just a lot less likely.

Great topic! I like to think that with hard work, perserverance, discipline and faith people will succeed, but sometimes life can throw some really brutal circumstances one’s way and it can be hard to recover. But overall, I’m an optimist! And the Yakezie community is such a great source of inspiration!

In theory it’s nice to say that we all have equal opportunities. And certainly plenty of people overcome really tough circumstances to achieve amazing successes. But it’s not really that black and white. Family, upbringing, culture, personal drive, intelligence, and so many other factors all play into it (http://eemusings.wordpress.com/2011/04/19/132/). Often that requires distancing yourself from, or cutting yourself off, from family or friends who are dragging you down. My fiance is definitely in that situation, but turning your back on your parents and siblings is a lot easier said than done even when it’s in your own best interests.

There are certain situations that are impossible to escape from at that moment, that’s just a fact of life. Pulling oneself up by the bootstrap implies, to me, a long, drawn out struggle to rise up. It’s not an easy task and it takes time. A lot of time. If one has patience, then yes, perhaps one will always have the option of eventually escaping their situation.

Yes, people can improve their own situation, but our lives are also very much a reflection of our circumstances. Were it 50 years ago, there would be no Internet and no computers for us to be having this discussion. If someone is born and lives in a rural village in Africa, they must live within the parameters of that life. Even here in North America, where we are comparatively spoiled, we do have boundaries that are genetic, based on our upbringing, or perhaps based in mental processes due to the structure of our brains.

I believe that we can all improve, and that the right way to treat other people is with respect and acknowledgement that they can also improve. Even if there are obstacles, it’s better to try and perhaps fail rather than give up too early. At the same time, I try and not judge too harshly because not everything in life happens due to a person’s own will.

[...] plate and improve my situation, I would still be working a job that I didn’t enjoy. While I don’t think that you can do ANYTHING that you put your mind to, it has become clear to me that there are a lot of things that we can do if we work hard [...]

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